BPDB now floats 495MW solar tenders after mega round falters
The fresh tender, floated on 27 April, sets 28 June as the deadline for submission, giving prospective investors two months to prepare proposals. The last date for selling tender documents has been fixed at 25 June
The Bangladesh Power Development Board (BPDB) has invited international bids to develop 10 grid-tied solar power plants with a combined capacity of 495MW across the country, as it seeks to accelerate renewable energy adoption following a disappointing response to a much larger tender earlier this year.
The fresh tender, floated on 27 April, sets 28 June as the deadline for submission, giving prospective investors two months to prepare proposals. The last date for selling tender documents has been fixed at 25 June.
According to the tender documents, the projects – spread across 10 locations – will range in size from 25MW to 100MW, targeting geographically diverse regions to strengthen grid stability and reduce reliance on fossil fuel-based peaking power plants.
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The move comes against the backdrop of a failed attempt by the state-owned utility to attract investors for 55 grid-connected solar projects with a combined capacity of 5,238MW. Those tenders, floated in four packages between December 2024 and March 2025 during the interim government period, drew proposals for only around 900MW – far below expectations.
Industry insiders attributed the lukewarm response to the absence of sovereign guarantees, which they argue are critical for ensuring bankability and attracting international financing.
Private sector players remain cautious about the new tender for the same reason, questioning how project developers will secure financing without sovereign backing.
However, BPDB officials insist that alternative assurances are in place.
Under the current framework, the BPDB will purchase electricity from the selected solar projects through competitively bid tariffs.
'No sovereign guarantee' gamble
The central point of contention for potential investors remains the government's refusal to provide a sovereign guarantee – a standard financial assurance that typically makes large-scale infrastructure projects "bankable" for international lenders.
Speaking to The Business Standard, BPDB Chairman Md Rezaul Karim defended the decision, citing a desire to avoid the "souring experience" of previous years. Historically, the BPDB has been burdened by the payment of tens of thousands of crores in capacity charges to private power plants that generated zero electricity.
"We are not giving a sovereign guarantee for these solar power plants following the previous experience of paying for zero electricity," Karim stated. Instead of a sovereign guarantee, the BPDB is offering a 20-year power purchase agreement with a commitment to buy 100% of the electricity produced.
"We will ensure the purchasing of fully produced electricity from the producers for 20 years. We will not impose any cap on the produced electricity because we have a deficit," Karim added, framing the "mass-run" status of these plants as a sufficient safeguard for investment returns.
The board had previously procured solar power both through open tenders and negotiated deals under unsolicited proposals, but the interim government moved away from negotiated pricing, citing concerns over excessive tariffs.
The new tender will follow a one-stage, two-envelope bidding method. A pre-tender meeting has been scheduled for 18 May at Bidyut Bhaban to address technical queries from interested parties.
To participate, bidders will need to purchase tender documents priced at Tk25,000 per package and submit a tender security of $5,000 per MW, a requirement aimed at ensuring serious participation.
The proposed projects include a 100MW plant in Tangail, to be connected to an under-construction 132/33 kV grid substation, making it the largest among the planned installations.
Two 50MW plants will be set up in Cox's Bazar – one each in the north and the south – while three additional 50MW facilities are planned in Panchagarh, Lalmonirhat and Netrakona, all to be integrated with nearby substations.
In addition, two 45MW projects are slated for Bhaluka in Mymensingh and in Kurigram. A 30MW solar plant will be developed in Lohagara, Chattogram, and a 25MW facility will be installed in Bajitpur of Kishoreganj.
The BPDB said the sites have been strategically selected near existing or under-construction grid substations to ensure seamless integration into the national grid and minimise transmission constraints.
The board also confirmed that the projects will be financed from its own revenue budget, signalling a shift towards greater reliance on domestic funding mechanisms.
Strategic distribution and grid stability
Industry insiders view this tender as a sophisticated attempt by the BPDB to stabilise regional grids. By targeting diverse geographic regions – stretching from the northern tips of Panchagarh to the coastal belts of Cox's Bazar – the board aims to reduce the load on fossil-fuel-based "peaking" plants.
The sites were specifically chosen based on their proximity to existing or under-construction grid substations to ensure seamless integration into the national grid.
Sector insiders see the initiative as a significant, though cautious, step towards diversifying Bangladesh's energy mix. By targeting diverse regions, the projects are expected to improve regional grid stability while supporting the country's renewable energy goals.
Policy makers and sector insiders said the success of the latest tender will depend largely on investor confidence—particularly in the absence of sovereign guarantees, which remain a sticking point for many international developers.
With the country facing persistent power deficits and growing demand, BPDB's ability to attract credible investors to these solar projects could play a crucial role in shaping Bangladesh's near-term energy transition.
